Cardinal Corporation stock sells for $20.They have 3,000,000 outstanding shares. Treasury bonds yield 4.5%. The market is expected to return 11.5%.Their bonds sell for $870. They have 10,000 outstanding bonds. They have 18 years till maturity. Their target debt ratio is 18%. Tax rate is 40%. Use 8% for cost of debt and 15% for cost of equity.

Liabilities and

Assets Owners' Equity

Current assets Current liabilities

Cash $300.00 Accounts payable $90.00

Accounts receivable $900.00 Notes payable $110.00

Inventory $500.00 Total $ 200.00

Total $1,700.00

Fixed assets

Net plant and

equipment $ 3,300.00 Long-term debt $1,000.00

Owners' equity

Common stock $600.00

Retained earnings $ 3,200.00

Total $ 3,800.00

Total assets $ 5,000.00 Total liabilities and $ 5,000.00

owners' equity

What is the weighted average cost of capital using book value?

What is the weighted average cost of capital using market value?

What is the weighted average cost of capital using target value?